Mastering Bond Markets: Investment and Trading Strategies for Finance Professionals

Program Days:

May 14, 16, 21, 23, 28, 2024
8:30 AM to 12:00 PM (GMT+08) on all dates

PROGRAM FORMAT
Delivered online via live virtual interactive sessions in Zoom

PROGRAM FEE
PHP 25,990.00 or USD 473.00*

*The prevailing exchange rate at the date of payment may apply.
Let us know if you are interested in availing of early bird/group discount or discuss payment terms

Program Overview

Bonds play a significant role in the world of Finance. It allows government and corporations to diversify its funding source. Bonds directly tap into a readily available large pool of surplus funds held by the public. Funding is not anymore limited to banks or large institutional investors. Anyone with excess funds can be a lender.

For investors, bonds are ideal investment option that provide a steady and predictable income stream. This is especially important for pension and retirement funds, insurance companies and retirees who rely on a regular cash flow.

But there are two other features that investor like in bonds: principal repayment and liquidity. Most bond issuers are obligated to repay the principal amount borrowed on maturity date. This is a very important feature as many investment instruments do not provide any guarantee on principal repayment. The promise of a repayment becomes even more secure, and therefore very attractive to investors, if the issuer is a sovereign or a very large and solid corporate.

Liquidity is another characteristic that bonds possess. Investors highly value liquidity as it enables them to move in and out of a position without unduly disturbing its price.

The combination of these features — regular income stream, the assurance of principal repayment, and liquidity – make bonds very appealing to investors.

Yet investing in bonds can be puzzling. Aside from bond’s coupon, credit quality, and liquidity, investors must consider its tenor, how sensitive it is to changes in interest rates or whether it can be redeemed before its maturity date. Oftentimes bonds carry sweeteners, features that make bonds more attractive to investors or flexible to its issuer. This may include a put option, a step-up provision if the bond is not called as scheduled or a cross default clause in case of a sovereign issue.

Assessing these various factors could easily overwhelm many investors. Making an informed decision on what bond is appropriate for one’s portfolio could be challenging.

This module is precisely designed to assist practitioners and investors navigate the world of bonds. The course will cover topics such as key bond features, price-yield relationship and bond valuation. It will also discuss the relationship between bonds and interest rates. A section on how bonds are marketed is also included.

Program Objectives
  • Understand the role of bonds in corporate finance
  • Learn basic bond features
  • Understand the fundamental price-yield relationship
  • Understand the impact of interest rates on bonds
  • Learning how bonds are valued
  • Understand the concept of duration and convexity
  • Learn how to estimate bond prices
  • Learn how bonds fit in an investment portfolio
  • Understand the basic approaches in marketing bonds
What You Will Learn
  • Key bond features
  • Reasons why bonds are issued
  • Capital structure and bonds
  • Impact of interest rates on bond prices
  • Bond valuation methodology
  • Estimating bond prices
  • Asset allocation and bonds
  • How bonds are marketed
Key Benefits
  • Better understanding of bonds and its role in corporate finance
  • Deeper knowledge of the relationship between interest rates, bond yields and bond prices
  • Enhanced knowledge of how bonds are valued
  • Deeper understanding of estimating bond prices
  • Broader appreciation of the role of bonds in portfolio management
  • Enhanced knowledge of bond marketing practices
Who Should Attend
  • Trust officers and staff
  • Treasury officers and staff
  • Corporate treasury officers and personnel
  • Individuals managing a family office
  • Individuals managing their own investment portfolio
  • Investment officers of insurance companies, pension funds, and mutual funds